COVID 19 Emergency Policy Responses : Why Credit Reporting Matters in the Stabilization and Recovery Phases?
Firms and individual borrowers are experiencing a sharp decrease in income due to COVID-19 (coronavirus), making them unable to meet their credit obligations. Governments, Central Banks and financial sector regulators across the globe have proactiv...
| Main Authors: | , , , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/446871590005299037/COVID-19-Emergency-Policy-Responses-Why-Credit-Reporting-Matters-in-the-Stabilization-and-Recovery-Phases http://hdl.handle.net/10986/33814 |
| Summary: | Firms and individual borrowers are
experiencing a sharp decrease in income due to COVID-19
(coronavirus), making them unable to meet their credit
obligations. Governments, Central Banks and financial sector
regulators across the globe have proactively intervened to
support the credit markets and avert a possible credit
freeze by introducing unprecedented measures such as
regulatory forbearance (includes moratoria on repayments,
extension of past-due days). Given the interplay between
fiscal, monetary and prudential policies, there is need for
a coordinated and holistic approach to policy formulation
and implementation to increase the likelihood of success of
these measures in the longer term. For example, it is
important that measures be carefully implemented, mindful of
the implications on the credit information cycle because
inaccurate and untimely data may delay recovery from the
crisis. Properly functioning credit reporting systems can
assist in the stabilization and recovery phases through
supporting private sector credit granting, minimizing cost
of public intervention, data driven policy formulation,
credit classifications and IFRS 9 ECL computations. |
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